The Comprehensive Tax Program (CTRP) aims to transform the country's tax system. The goal is to make it easier, fairer, and more efficient. It will boost investment, create jobs and reduce poverty.
New tax laws have been enacted in recent years, beginning with the TRAIN. It introduced significant tax rates and filing changes, drastically changing the way people in the Philippines calculated their taxes.
Different tax filing guidelines are not the only things that come with these new tax laws. The Bureau of Internal Revenue (BIR) has also issued several new and updated forms.
These new forms appear in packages, including the latest version 7.1 BIR forms package. The three different forms published in May 2018 were 0619E, 0619F and updated 1701Q.
The incorporation of these forms includes many changes that I cannot describe in a single article. For now, let us focus on the BIR Form 0619E.
BIR Form 0619-E is also called the Expanded Creditable Income Tax Withheld, monthly remittance form. You can use it to file a creditable or expanded withholding tax. These taxes are set on specific income such as professional talent fees, rental income, and payments to contractors.
It is easy to confuse expanded withholding tax and withholding tax. But one thing to remember is that there is no relationship between the employee and the employer in the former. An example of this is the attorney-client relationship in which the attorney offers services without being an employee.
These are the agencies required to file taxes, known as withholding agents. These are the people who deduct and withhold these taxes on income payments. Any money they get, they send it to the government.
Self-employed workers also file this form because they are not part of an employee-employer relationship. All income derived from the exercise of your profession is subject to a tax rate of eight percent.
Mixed-income people (such as those who have a separate business outside of work) should also file their expanded taxes using this form.
Other entities that need to file this form are corporations, government agencies or instruments, authorized agents, and accredited tax agents assigned by the taxpayer to file taxes on the taxpayer’s behalf.
Please note that you cannot file this form in March, June, September, and December. Instead, you will need to use form BIR 0619F, which is for your final withholding tax.
BIR Form 0619E must be filed with an Authorized Agent Bank of the Revenue District Office (RDO). They have jurisdiction over the business premises of the withholding agent.
If there is no AAB within the area, the form must be submitted to the RDO's Revenue Collection Officer, who will issue an Electronic Revenue Official Receipt.
If you plan to file to AAB, be sure to complete and submit the BIR-recommended deposit slip to verify your remittance. Bank tellers use a machine to do this and also stamp the form with the word 'received' as proof.
